Rightmove has been named as the world’s number one property portal.
Industry guru Simon Baker, of Property Portal Watch, has put Rightmove first in a list of “top ten global property portals to watch”.
Baker, who has previously headed up the REA Group with responsibility for Propertyfinder before its acquisition by Zoopla, praised Rightmove.
He described it as “a simple pay-to-list, low cost operation with a clear model which doesn’t get distracted but stays focused on delivering good value for its audience”.
Baker puts the number of property portals around the world as being between 8,000 and 10,000. He said pay-per-lead models will come on stream.
Baker names two other UK firms in his “top ten global property portals to watch” – presumably believing that they are portals, rather than agents.
In places 8 and 9 respectively are Purplebricks and easyProperty.
He says their business models are the way of the future.
“They work on the premise of streamlining a self-service model rather than paying agent commissions.
“The younger generation don’t want to pay a 2% commission when they could sell their own house. They feel comfortable buying products online, even making movies, so they feel just as comfortable buying or selling property.
“This kind of model where you pay a Purplebricks to market and help you out with compliance while the user does the rest will work and it’s the future.”
Baker also concludes: “The portal of the future will be a data collecting device. It understands the behaviour of specific buyers in great detail and will be able to work with advertisers to target buyers more effectively for better lead conversion.”
Comments (19)
Yawn. EasyProperty shouldn’t be in the top ten of anything.
As soon as he mentioned them …. it became a joke. He’s lost the plot trying to hang onto his earlier street cred.
Can I name Simon Baker as probably the best lager drinker in the world.
‘The younger generation don’t want to pay a 2% commission when they could sell their own house. They feel comfortable buying products online, even making movies, so they feel just as comfortable buying or selling property‘. Is this guy a serious commentator? Not read this much unsubstantiated twaddle in years.
If they pay enough cash to enough schmoozers, media whores and experts with contacts in the media they might convince a few more investors to part with enough cash to keep the whole scam going for a few more months
“The younger generation don’t want to pay 2%”
Was this article written in the 80’s?! Since when has 2% been the benchmark? Any generation will pay a fair fee, usually around 1%, for a good service which adds value to their experience and in most cases gets them at least the fee back by good negotiation.
Who called this joker a guru? I suspect there is an ulterior motive underneath all this.
Once again, the concept of “people not wanting to pay for what they can apparently do themselves” is utterly flawed. DIY agency overlooks the fact that most homebuyers buy something that is different from what they initially expected. Until a DIY service can harness buyers’ areas of compromise then agents will continue to offer real value to sellers – ie extracting sales that would not otherwise have happened. This will probably be at a higher price too. Indeed according to the NAR, in the US, sellers can expect to sell for 16% more with an agent than without. Have a great day!
Yes its that good old brokerage system. INEA recently did a trial with a Countrywide office and with sub agents co brokering applicants in we achieved 9 viewers not from portals but sub agents office locations and mailing lists. The vendor from lowest valuation achieved £50k more what with brokering her purchase down too.
£50k extra, or a budget fee and £50k less. Doesn’t take a lot of working out.
Showing CW main/sub agency I also achieved for them a 50% higher sellers fee than 3 other local agents quoted.
It is flawed, without a doubt – but I would say that somewhere between 10% and 20% will seriously consider it.
Might I suggest (I’m ready to duck) that us estate agents need to stop thinking like estate agents and start thinking like members of the general public. They are not at all like us psychologically speaking – otherwise you could grab the next passerby, put a suit on them and they’d become your best negotiator… We might know better than them, and we might be right (most of the time at least) but that doesn’t stop them believing what they believe.
The problem that the industry has is self generated:
– we are (generally) seen as overpaid, pushy, slick spivs in w*nker-mobiles driving like idiots.
– we (generally) go around saying things like “Your house is lovely and I’ll sell it for £10k more than it’s really worth in a heartbeat”
– we (generally) get caught out for our over-pricing lies and the owners never forget that they were duped
and, my personal favourite here….
– we all “do the same thing don’t you, put it on the internet and stuff… So, can I have a cheap fee?”
To which the answer is nearly always “Yes” as far as I can tell.
My office has the highest average percentage fee in the company I work for and is just a shade over 1.3%, but that is bolstered returning customers who don’t try and negotiate fees rather than persuading new customers to pay more.
This grinds my gears – I should be rewarding the repeat business but I can’t afford to.
Comparing the US market to the Uk market is flawed, with all due respect.
Fees are being smashed to pieces , due to limited stock and there being so many agents fighting for such little stock vendors have the power to demand lower fees, or even resort to using Hybrid/Internet agents.
There are quality Agents in my town offering half a % on an average house price of £450,000 and dominating the market place. I personally refuse to do this sort of fee as the actual commission I’d earn off the back of it makes it completely worthless.
Agents are their own worst enemy, the high street agent if it isn’t careful will kill itself off.
‘I personally refuse to do this sort of fee as the actual commission I’d earn off the back of it makes it completely worthless.’
LA201625 – when you say ‘I’ do you mean you personally, or your company/branch?
Both, to be honest Pee.
Houses being sold at £375,000 with fees of 2500 inclusive of VAT.Not worth it at all.
So… what you’re saying is ‘1.5% of nowt is better than 0.5% of something’ – yes?
Self proclaimed animal ‘guru’ names blue whale as worlds largest animal. Daffodils are 9th.
“The younger generation don’t want to pay a 2% commission when they could sell their own house. They feel comfortable buying products online, even making movies, so they feel just as comfortable buying or selling property. This kind of model where you pay a Purplebricks to market and help you out with compliance while the user does the rest will work and it’s the future.”
It is indeed the future. For the time being. However, when the market turns, as it inevitably will, and property becomes much harder to sell, then these ‘portals’ (sic) will fall like a row of dominoes.
@ Agency Insider. Its the future for just a few years. As its unsustainable as a business model unless VC’s throw money down the pan.
Another property ‘expert’ who doesn’t appear to fully understand some of the basic facts of the topic they are speaking on.
Simon comes with a pedigree if you research him Chris. I know Simon from portal and real estate meets in NYC. He made many many $millions from early Aus portals.
But he’s wrong about the budget models. Budgets need around £500 to pay for the bod to go out/the FS board, portals, EPC, pics etc, etc.
RM has been one hell of a success, whilst budget models are on heavy burn.
What Simon isnt seeing is that were now seeing the £99-£399 models to get your house on RM and Z. As such the £500 runs short.
The budgets also rely on other upsells like conveyance/ removals etc. If in 2 years there are 2000-4000 budget ways to get a home on RM and Z from £zero. Then the budgets ‘save you £housands’ will face the penny listers crying out were save you £100’s on easyP and Purple fees.
Higher priced budgets would have to reduce their fees in line and also up the £m’s they spend on marketing.
Basically, budgets have a limited time left of a few years.
Agency now needs agents introducing higher comm, higher service level models.
Sell on service. The race to the bottom is a non winnable game.
If he can’t grasp the difference between a company website and a portal, he doesn’t meet my benchmark of a ‘guru’ or an ‘expert’. On the facts as portrayed here, the only pedigree I detect, is Chum!